BPI sees 10-12% loan book expansion

Ayala-led Bank of the Philippine Islands (BPI), which is embarking on a rebranding program, sees its loan book sustaining a growth of 10-12 percent this year.

BPI also expects a sustained improvement in net interest margin (NIM) for the full year as asset yields improve.

Maria Theresa Marcial, BPI executive vice president and chief financial officer, said that for 2019, the bank’s NIM might improve by 16-18 basis points from the previous year.

In the first six months, the bank’s NIM had widened by 38 basis points as asset yields improved by 103 basis points, partially offset by higher cost of funds.

BPI grew its loan book during the six-month period by 10.8 percent year-on-year to P1.35 trillion, boosted by corporate and consumer loans, which increased by 11.6 percent and 10.3 percent, respectively.

This double-digit growth is seen to be sustained for the rest of the year, especially with the Bangko Sentral ng Pilipinas slashing the reserve requirement that, in turn, will improve domestic liquidity and reduce intermediation cost.

By converting more of its deposit liabilities into earning assets, BPI seeks to boost its net interest earnings.

BPI booked a six-month net profit of P13.74 billion, rising by 24.6 percent from the previous year as higher trading gains and fee-based income complemented the double-digit expansion in net interest earnings.

Meanwhile, BPI is embarking on a rebranding program that involves the fine-tuning of its logo and the adoption of the tagline “Ready today. Ready tomorrow.”

Cezar Consing, president and chief executive of BPI, described the brand refresh as a reaffirmation of BPI’s objective to continue to play a constructive role in nation building.

“While we are 168 years old, we have to earn our future every single day and that means that we must do all we can to help secure the financial futures of our own customers,” Consing said.

BPI simplified its logo, the escudo, or shield, citing the need to make it more suitable for digital execution while ensuring that the logo’s key elements are retained.